GERMAN economic recovery is only partly under way, according to a survey released yesterday by the German economic research institute, Ifo.

Business confidence and prospects for future business improved in western Germany in October, the Ifo report said, while belief that the economy was making improvements grew strongly.

But in eastern Germany the recovery pattern was not establishing itself properly. The overall situation was described only as satisfactory in the report.

The business environment in west Germany had clearly improved, the Ifo survey said, with lively demand leading to an increase in the production of finished goods, and an improvement in orders.

But in the east German sector optimism and pessimism balanced each other out. Demand, was lower and job losses continued to grow, with unemployment expected to rise.